Agent Resource Center

Monthly Agent Newsletter

June 2017

 
 

The recently released, second annual Bank of America Homebuyer Insights Report reveals that forward-looking millennials aren't shying away from homeownership.

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Stay connected with our recently refreshed Neighborhood Lending and National Builder web pages.

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Do you have clients looking at higher-value homes? If so, they may want to consider a Bank of America jumbo loan.

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Survey shows millennials aren't waiting to buy

Bank of America recently released findings from the 2017 Bank of America Homebuyer Insights Report, which looks at the attitudes and behaviors of today's homebuyers. In its second year, the report revealed that forward-looking millennials are recognizing that owning a home is an integral part of their personal and financial wellbeing. They see their current home as a stepping stone to their "forever home" and understand the long-term payoffs.

Prospective first-time homebuyers who are still waiting until they feel better prepared could gain insight from the experiences of peers who are already benefiting from homeownership. Highlights of the report's findings include:

  • Younger buyers who have made the leap understand the value of buying sooner and are confident they made the right decision. This group sees the positive impact homeownership has on their long-term financial picture (79%), and they believe owning a home is more affordable than renting (86%).
  • While many would-be buyers are planning for a first-home purchase, they aren't ready to take the plunge just yet. They rank paying off debts and bills (61%), improving credit score (47%) and saving for a new home (45%) as their top three financial priorities.
  • Experienced buyers say the value of homeownership goes beyond dollars and cents. Homeowners value the emotional benefits of homeownership; 95% are proud of owning their home, and 91% treasure the memories they have made. More than three-quarters (78%) of owners say homeownership is not a burden.

Find out more about the attitudes of today's homebuyers in the second annual
Bank of America Homebuyer Insights Report.

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Updated online resources for your clients

We have refreshed the Neighborhood Lending and National Builder Division web pages that provide specialized homeownership solutions for your homebuyers. Bank of America continues to connect its clients, real estate professionals, builders and housing-counseling agencies to responsible lending products and services.

Helping your clients plan for homeownership

The Neighborhood Lending team delivers sustainable homeownership solutions to help modest-income and multicultural clients plan for homeownership. The team also connects real estate professionals and housing-counseling agencies to online tools and low-down-payment loans. These resources include:

  • Bank of America Real Estate Center® provides buyers with easy access to listings so they can keep up with their home search even when they're on the go. They can also take advantage of tools and resources to learn more about budgeting, saving and buying a home.
  • The Down Payment Resource Center is an online tool which allows homebuyers to search hundreds of down payment and cost savings programs,footnote1 which may be combined with the Affordable Loan Solution® mortgage,footnote2 a fixed-rate loan for modest-income homebuyers with a down payment as low as 3% with no mortgage insurance required.
  • We partner with hundreds of nonprofit housing-counseling agencies through the Connect to Own® program and provide homebuyer education resources to expand knowledge to make financial lives better.

Learn more about these resources and how to connect with the Bank of America business development team to help grow your business and serve modest-income and multicultural clients at bankofamerica.com/neighborhoodlending.

Providing resources for our builder partners

Our National Builder Division is a dedicated leadership team with a network of lending specialists focused on lending for new construction. The team is ready to help builders expand your business with specialized experience and a wide range of loan products to meet your clients' needs. The National Builder Division can help connect you to tools, resources and support such as:

  • A network of lending specialists: We'll work closely with your homebuyers from application to closing — and keep you informed every step of the way.
  • A PRO team: Our Project Review Office (PRO) helps make condo approvals easier.
  • Access to appraisal professionals: We work with high-quality professional appraisers who are experienced in new construction appraisals.
  • Access to data: The National Builder Division works with several data providers to bring you up-to-date local market trends and insights.
  • Access to the right loan: We offer a wide range of financing to meet your clients' needs — for homes up to $5 millionfootnote3 as well as low-down-payment options with flexible credit and income guidelines. For example, government loans from the Federal Housing Administration (FHA)footnote4 and the U.S. Department of Veterans Affairs (VA),footnote5 Affordable Loan Solution mortgage with a down payment as low as 3% and no mortgage insurance required (maximum income and loan limits apply),footnote2 and Doctor Loans with a down payment as low as 5% for medical professionals (some limitations applyfootnote6,footnote7).

Learn more about resources for builders at bankofamerica.com/builder.

1Down payment and/or closing cost assistance programs may not be available in your area. Down payment and/or closing cost assistance amount may be due upon sale, refinance, transfer, or repayment of the loan, or if the senior mortgage is assumed during the term of the loan. Some programs require repayment with interest, and borrowers should become fully informed prior to closing. Not all applicants will qualify. Minimum credit scores may apply. Sales price restrictions and income requirements may apply. Homebuyer education may be required. Owner-occupied properties only. Maximum loan amounts may apply.

2Available for fixed-rate purchase loans with terms of 25 or 30 years and on primary residences only. Certain property types are ineligible. Borrower(s) must not have an individual or joint ownership interest in any other residential property at time of closing. Maximum purchase loan-to-value is 97% and maximum combined purchase loan-to-value is 103%. For loan-to-values > 95%, any secondary financing must be from an approved Community Second Program; ask for details. Homebuyer education may be required. Restrictions apply regarding co-borrowers. Maximum income and loan amount limits apply.

3Minimum down payment requirements vary by property type and location. Loan amount, interest-only payment option, loan-to-value percentage, property and/or occupancy type may require a higher level of reserves and/or post-closing liquidity. Two separate full appraisals may be required. Excellent credit required, including proof of recent consistent housing payment history. Not available on all loan programs. Other restrictions apply; ask for details.

4Monthly Mortgage Insurance Premiums (MIP) and Upfront Mortgage Insurance Premiums (UFMIP) apply. Maximum loan amounts vary by county.

5VA funding fee applies except as may be exempted by VA guidelines. The fee is higher with a zero down payment, and maximum loan limits vary by county. If a down payment of 5% or more is made, the fee is reduced. The VA funding fee is non-refundable. Ask for details about eligibility, documentation and other requirements.

6Minimum down payment requirements vary by property type and location; ask for details.

7An applicant must have, or open prior to closing, a checking or savings account with Bank of America®. Applicants with an existing account with Merrill Edge®, Merrill Lynch® or U.S. Trust prior to application also satisfy this requirement. Medical professional (MD, DDS, DMD, OD, DPM, DO, residents, and students whose employment begins within 60 days of closing) must be actively practicing in their field of expertise. Those employed in research or as professors are not eligible. For qualified borrowers with excellent credit. PITIA (Principal, Interest, Taxes, Insurance, Assessments) reserves of 4–6 months are required, depending on loan amount. Other restrictions apply.

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Product spotlight: The jumbo loan

If you have clients looking at higher-value homes, you can share with them the benefits of a jumbo loan.footnote1

As you know, a mortgage loan is called "jumbo" when it exceeds the loan-servicing limits set by Fannie Mae and Freddie Mac. Currently, that limit is $424,100 for a single-family home in all states except for Hawaii and Alaska, as well as a few federally designated "high-cost markets" where the limit is $636,150.footnote2

Jumbo loans are available in a variety of terms, including fixed-rate and adjustable-rate loans. At Bank of America, we provide jumbo loans in a range of amounts to help meet your clients' needs. Our jumbo loans offer:

  • Loan amounts up to $5 million on owner-occupied properties, and up to $2 million on second homes
  • Low, competitive interest rates
  • Down payments as low as 10.01% with no mortgage insurance for qualified borrowers on owner-occupied properties up to $1 million.

For more information about jumbo loans and to find out whether they could benefit your clients, contact your lending specialist.

1Minimum down payment requirements vary by property type and location. Loan amount, interest-only payment option, loan-to-value percentage, property and/or occupancy type may require a higher level of reserves and/or post-closing liquidity. Two separate full appraisals may be required. Excellent credit required, including proof of recent consistent housing payment history. Not available on all loan programs. Other restrictions apply, ask for details.

2The loan limits stated are valid through December 31, 2017.

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This publication is provided for your convenience and information only. Bank of America, N.A. assumes no liability for loss or damage as a result of your reliance on information in this publication. Photos are for illustration purposes only and are not to be construed as an endorsement of a particular product or company. Unless expressly disclosed otherwise, Bank of America, N.A. is not affiliated with or responsible for the products or services of any company that may be mentioned or depicted in this publication. Our goal is for the contents of this publication to be accurate as of the date this issue was printed. However, we do not guarantee that any content is accurate or complete.

ARY7HVTL

 

 
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